Under $10 Stock Gearing Up for a Major Breakout

by Sam Collins | February 28, 2014 1:51 am

Under $10 Stock Gearing Up for a Major Breakout

Rambus (RMBS[1]) — This technology solutions company provides memory, chip interfaces and architectures, end-to-end security and advanced LED lighting. On Feb. 21, Zacks reported Rambus could be “an interesting play for investors.” It noted that the stock had strong forward momentum and is seeing “solid activity on the earnings estimate revision front as well.”

This is a speculative stock that is recommended on the basis of technical analysis. Note the symmetrical continuation triangle, a formation that usually occurs prior to a major breakout and continues a long-term move higher following months of consolidation. A long-term uptrend line could be drawn from the stock’s low at $4 made in November 2012, and it is this uptrend that the current formation is “continuing.”

Buy RMBS at the market with a target of $11.30 to $11.70. I found this Trade of the Day recommendation using our new Profit Scanner[2]service.